Expenses and Hospitality Guidance

Transcription

1 Expenses and Hospitality Guidance Contents 1. Expense Claim Procedure University credit cards Foreign currency expenses Travel What is Business Travel? Out of hours working Travel costs of spouse, guests or family members Rail Fares Tube Fares UK and Ireland air travel Mileage Car hire expenses Car parking Congestion charges Road tolls Fines and penalties Travel Overseas Pre-Approval form Authorisation Expenses Travel insurance and notification of travel Air travel Subsistence Definition Expenses allowed Page 1 of 35

2 5. Hotel Accommodation Expenses allowed General travel expenses Staying with Friends Allowance University Accommodation Work-Related Training Courses Other training Conferences, lectures and seminars Advances for Travel Entertainment Definition of entertaining University policy Tax treatment of entertaining Specific procedures for entertaining expenses Provision of refreshments during a meeting Sandwiches and working meals on University premises Business lunches and working meals elsewhere Tips University-specific events Other Expenses Home/Personal Mobile Telephone Costs Professional Subscriptions Books and Publications Medical Examinations Relocation Expenses Eye Tests for Display Screen Users Uniforms Gifts Non-employee expenses and payments Students Page 2 of 35

3 9.2. Academic visitors Payments to external examiners Volunteers and subject payments Items not covered elsewhere Tax Questions Contacts Quick Guide Expense Claim Procedure As a general rule the University reimburses any reasonable expenses incurred by an employee in the performance of their duties, provided that the amount claimed is properly authorised and is supported by receipts or other supporting documentation: Expense claims should be made within six months of the expense being incurred. Where possible, expenses should be claimed before the end of the financial year to which they relate. Claims must be supported by receipts wherever the supplier can reasonably be expected to provide one. Original documents must be submitted in support of an expenses claim. Where the original receipt is available this must be provided as this will allow any VAT to be reclaimed. Electronic or scanned versions are acceptable. Any attempt to submit a false claim may be treated as a disciplinary offence University credit cards The University may arrange for a credit card to be provided for any employee for whom it is considered that such a facility is appropriate. Authorisation for a card must come from a member of the Executive. Where such a card is provided, it is to be used only for business purposes. Where a credit card is provided for use by a member of staff on business, the University will pay the initial subscription and annual membership fee where these are charged. The University reserves the right to review usage on an annual basis Page 3 of 35

4 1.2. Foreign currency expenses General principles The University will make all payments, both to individuals and suppliers, in pounds sterling (GBP), unless the contract specifically states otherwise. Payment in foreign currency will be permitted in cases where the payee is not resident or has no permanent establishment within the UK and has no UK bank account Reimbursement of expenses in Pounds Sterling Where expenses are initially paid out by the employee in foreign currency and reimbursement sought in pounds sterling, the exchange rate calculation must refer to a verifiable and reliable source and the rates in force at the time of the conversion. Acceptable sources for general rates include XE.com, OandA.com or the Financial Times. Where currency has been converted, the rate given at the exchange bureau or via an ATM or bank receipt should be used. A copy of the source and calculation should be attached to the claim. Employees should ensure that any additional funding requirements in respect of expenses charged against research grants are also adhered to Reimbursements or payments in foreign currency For reimbursement of expenses claims in any currency other than Pounds Sterling, an explanation should be attached to the claim detailing why this is necessary. 2. Travel 2.1. What is Business Travel? The University will only provide for, or reimburse, the costs of necessary business travel. This is defined by the HMRC as travel primarily for a necessary business purpose, ie travel by an employee in the performance of their duties of employment or travel by any non-employees to or from the place they are required to attend as part of University business. The University will not provide for or reimburse the costs of ordinary commuting or private travel. Page 4 of 35

5 Ordinary commuting Ordinary commuting, ie travel between home and the normal or permanent place of work, is not normally a tax-allowable expense. Expenses cannot be claimed for these costs Stopping off on an ordinary commute Employees are not able to convert ordinary commuting journeys into allowable business journeys by stopping off at another workplace between home and their normal place of work. Expenses cannot be claimed for these costs Temporary places of work Travel between home and a temporary workplace is tax allowable and not considered by HMRC to be ordinary commuting. A workplace is temporary if an employee attends only to perform a task of limited duration or for a temporary purpose. HMRC consider limited duration in this context to be a period not exceeding 24 months. Temporary purpose is considered to mean a particular reason or self-contained activity which is not in itself a continuation of other tasks. It should be noted that the temporary workplace should also be in a location significantly removed from the employee's normal place of work for it to be considered under these rules. Some staff may have more than one permanent workplace ie they are required to work at a number of different, defined locations during the normal course of their employment. Only where there is a specific, temporary assignment that satisfies the criteria defined above will it be possible to allow travel expenses between home and a temporary workplace. Where the member of staff is sent on a detached duty assignment, business travel may comprise: Travelling on a daily basis from home to the detached duty location. Travel costs may be based on : o the actual cost of a weekly or monthly (or longer period if more cost effective) season ticket where public transport is used; or o the appropriate car mileage rate, where the member of staff uses their own motor vehicle; or Page 5 of 35

6 o actual fuel costs where a University or hire vehicle is provided to the member of staff; or Where the member of staff cannot travel daily to the new work location and is obliged to stay in the area of the new location, travel to the new location at the beginning of the assignment and travel home at the end, plus reasonable return journeys home during the assignment. The travel authoriser may allow an expenses claim for these costs Non-Employees Claimants who are not employees, and who receive no round-sum payments from the University in return for service or services provided, may travel between home and the place they are required to attend on University business without it being considered ordinary commuting for tax purposes. The travel authoriser may allow an expenses claim for these costs Out of hours working A requirement to work outside of normal contracted hours does not in itself alter the points above. If an individual is called out to the office over a weekend or asked either to start work early or stay late, these factors alone do not change an individual's journey between home and work to anything other than ordinary commuting. Expenses cannot be claimed for these costs Late-night taxi fares The only exception to section 2.2 is to cover the cost of late night taxi fares. The following criteria should be applied by departments when making this decision: If the employee is required to work later than usual (ie beyond 9:00pm); and This occurs irregularly, meaning not following a usual or established custom (such as: every Friday night; one night each week; or the second Thursday every month; all being examples where this would be deemed to show a regular pattern); By the time the employee finishes work either public transport has ceased or it would be unreasonable to expect the employee to use it. Unreasonable means that the journey home is rendered significantly different in terms of length or difficulty; The transport is by taxi or similar means; and The number of occasions that such transport is provided is no more than 60 in any one year. Page 6 of 35

7 Additionally, taxis may be used in cases such as injury or illness. TOA taxis may be contacted in order to arrange for a taxi to take the employee home, charging the cost to the Department s account. Please also read the Working Time Directive guidance. The travel authoriser may allow an expenses claim for these costs Travel costs of spouse, guests or family members The University will not normally meet the travel or associated costs of a spouse, partner, family member or guest of an employee accompanying them on an allowable business trip. These costs are taxable. The University will only bear the travelling and subsistence expenses of a partner or guest where he/she accompanies a traveller on a business trip if: The traveller is too ill to travel alone. The partner or guest has a specific skill or qualification which prevents the University from having to pay another individual to perform a specific duty, for example acting as an interpreter. The partner or guest s presence is essential to act as host at a series of business entertainment functions which have been organised as part of the traveller s employment duties. In this case the traveller must also ensure that they keep an itinerary of the hosting responsibilities (detailing the events) in order to establish that there has been substantial business entertaining. The partner or guest is travelling as a carer for a traveller with a disability. The partner or guest is a collaborator from another University or institution on a shared project whereby Aston can reclaim the costs of travel. Where a partner or guest does accompany a traveller on a business journey, it is essential that their travel is authorised by the normal travel authoriser prior to expenses being incurred. For members of the Executive such approval must be given by the Vice-Chancellor. For the Vice- Chancellor prior approval is required from the Chair of Council. Whilst the University will not pay, an employee may choose to pay for a spouse, guest or family member instead Rail Fares Travel by standard class should be the default in most instances. Page 7 of 35

8 An example of where first class travel is acceptable is where first class is cheaper than standard class or long distance travel eg to Scotland. In all cases where standard class has not been used, then proof supporting the reason must be provided (eg screen-shot of booking page) with the claim for the journey. Where first class travel is to be booked for reasons other than cheaper cost, it must be preapproved by a member of Executive or the Vice Chancellor. Advance or fixed tickets must be booked wherever possible and usually on the outbound trip. Rail travel must be booked via the University preferred travel agent unless a cheaper journey cost can be proved or in exceptional circumstances (eg urgent requirement to travel or inability to access the approved travel provider in time to make the booking). A quote from the preferred travel agent must be attached if another travel agent is used. Expenses will only be reimbursed if the preferred travel agent is more expensive or when the exemptions apply Tube Fares Where possible, Oyster cards should be used to reduce the cost of travel. Under HMRC rules, the deposit to buy a new card is a taxable benefit. Individual fare receipts can be printed through the Transport for London website UK and Ireland air travel All air travel should be booked via the University preferred travel agent unless it can be demonstrated that a better rate could be achieved elsewhere or in exceptional circumstances (eg urgent requirement to travel or inability to access the approved travel provider in time to make the booking). Evidence of the preferred agent s quote must be attached to the expense claim to justify the deviation from policy. Where the University is paying, all travellers are expected to travel economy. Air travel should be used when it is cheaper than rail travel or saves a considerable amount of time Mileage It is expected that travellers will use public transport where available otherwise employees may use private vehicles on University business. Members of staff who wish to use their own private cars, motorcycles or bicycles on University business must seek prior authority to do so from their travel authoriser. It is however the employee s responsibility to ensure that the car or cycle is legally roadworthy. This includes ensuring that: Page 8 of 35

9 The employee has a valid driver s licence; and The vehicle is properly insured for the appropriate business use and if applicable for passengers and business equipment; and The vehicle is taxed; and The vehicle has a valid MOT certificate, if applicable. When travelling on business, the traveller may only claim the cost of the distance actually travelled. Business mileage will be reimbursed at the rates set out in the Quick Guide 2.8. Car hire expenses The University will fund car hire charges when an employee is required to travel on business journeys. In the UK, travellers must ensure that one of the University s approved car hire suppliers is used and no public transport option is available. Car hire should be considered where car shares or multiple travellers mean that a hire car is cheaper than other travel options Car parking Parking costs incurred in the course of business travel may be claimed via expenses. Original receipts must be submitted where available to allow the reclaim of VAT Congestion charges Where congestion charges are incurred in the course of business travel, the cost of the congestion charge will be reimbursed, provided a suitable receipt is submitted with the claim. Note that any fines for non-payment of the charge are a personal cost and will not be reimbursed Road tolls Where road tolls or the equivalent are incurred in the course of business travel, the cost of the toll will be reimbursed, provided a suitable receipt is submitted with the claim. Travellers should consider value for money when planning a journey Fines and penalties The University will not reimburse or meet the cost of any fines. This includes inter alia parking, speeding, bus lane and congestion charge fines. Page 9 of 35

10 3. Travel Overseas 3.1. Pre-Approval form All travel overseas must be recorded on a pre-approval form found XXX. This form allows Aston to fulfil its duty of care to its employees and travellers by checking a number of items such as the Foreign Office recommendations on whether to travel to the country. It also allows managers to understand where their staff are and gives travellers a useful checklist Authorisation Any travel overseas must be approved in advance by the Executive Dean or Head of Department or their nominees. Overseas travel for the Deputy Vice-Chancellor, Pro-Vice- Chancellors, Deans and Heads of Department should be approved in advance by the Vice- Chancellor. For the Vice-Chancellor approval is required from the Chair of Council Expenses Where University business is undertaken wholly or partly outside the UK, the University will fund the cost of travel from the United Kingdom (including from home) to take up the overseas employment and the cost of the return journey from abroad. The University will also fund subsistence expenses outside the United Kingdom Travel insurance and notification of travel Please note that when travelling abroad on University business a traveller will, other than in exceptional circumstances, be covered by the University s travel insurance policy; the University will not pay for privately arranged travel insurance. Travellers must follow the HR guidance on international travel including the requirement to complete the electronic form. In the event that the business trip is broadened (for example, the traveller pays personally for family members to also make the trip, or a circuitous route is arranged for personal reasons) then the traveller must ensure that they have made the Insurance Officer aware of the details and clarified the insurance position. Any changes of plans should be notified to the University. Page 10 of 35

11 3.5. Air travel All air travel should be booked via the University preferred travel agent unless it can be demonstrated that a better rate could be achieved elsewhere or in exceptional circumstances (eg urgent requirement to travel or inability to access the approved travel provider in time to make the booking). Evidence of the preferred agent s quote must be attached to the expense claim to justify the deviation from policy. Any travel booked outside of the preferred agent including the purpose of the trip and anyone else who is travelling with them must be notified to the Insurance Officer in case of emergencies. Where the University is paying, all travellers are expected to travel economy (for all short haul flights - generally defined as within the boundaries of Europe including Belarus, Norway, European Russia, ie Moscow & St Petersburg, Switzerland, Turkey and Ukraine) or premium economy (for long haul flights over 8 hours) as the standard class for all travel. If premium economy is not available, the default should be economy. Any higher class travel must be discussed, without exception, and authorised by the travel authoriser. "Trading down" of travel tickets ie travelling by a lower class in order to claim an extra ticket for a guest of the employee, will not be permitted. See section 2.3 for more details on partner or guest travel Working days Where staff have travelled long-haul, due regard should be given to the Working Time Directive. Travellers are recommended to read the guidance. On return to the UK after short haul travel, it is expected that the staff member returns to work the following working day, unless other arrangements have been agreed in advance with their line manager Airport parking Airport parking will be paid but where an employee has travelled long haul in economy or economy plus, consideration should be given as to whether a taxi is a safer method of returning from the airport to home especially when arriving overnight. Please note that prebooked taxis should be used where appropriate to deliver value for money. Page 11 of 35

12 4. Subsistence 4.1. Definition Meals and refreshments taken whilst on allowable business travel Expenses allowed Members of staff who are required to travel in the course of their work are entitled to claim the additional cost of meals taken whilst away on business. Only the costs of meals taken in the course of business travel as defined under "What is business travel?" (see section 2.1) will be borne by the University. Members of staff may claim the actual, reasonable costs of food and drink up to a maximum as per the table below. Alcoholic drinks will not be reimbursed. Subsistence payments for spouses, partners, family friends or guests are specifically disallowed unless the conditions allowing business travel for such people are met. Subsistence allowances cannot be claimed for food purchased for consumption at home. All expense claims must be supported by receipts. Agreed by Audit Committee as at 31 st August Purpose Location Duration Day rate subsistence Day rate subsistence Day rate subsistence Day rate subsistence Day rate subsistence All Locations All Locations All Locations All Locations All Locations Maximum Reimbursable Up to 5 hours 4 More than 5 hours and less than 9 hours More than 9 hours 15 Evening meal only 25 Full day rate including evening meal These rates apply to all countries but where costs are higher or lower overseas, the rates used should be consistent with what the equivalent would cost in the UK Page 12 of 35

13 5. Hotel Accommodation 5.1. Expenses allowed Anyone travelling on business should obtain accommodation at the most economical rate in a reasonable quality hotel. Wherever possible, hotel bookings should be made in advance through the University's preferred agent and paid for directly by the department. A quote from the preferred travel agent must be attached if another travel agent is used. Expenses will only be reimbursed if the preferred travel agent is more expensive or in exceptional circumstances (eg urgent requirement to travel or inability to access the approved travel provider in time to make the booking). Conferences with hotel accommodation included should be reviewed to ensure that they are delivering value for money. The University will pay for the cost of the room and meals taken during the course of the stay. All claims for reimbursement must be supported by documentary evidence in the form of a bill, receipt or similar. Where meals are not taken in the hotel, the subsistence rules in section 8 will apply. Purpose Location Duration Maximum Reimbursable Hotel Accommodation London Overnight stay 150 Hotel Accommodation UK outside London Overnight stay 100 Hotel Accommodation Overseas Overnight stay 150 Amounts exceeding these overnight rates must be approved by the travel authoriser before booking including instances where the overseas rate is not sufficient due to safety concerns or the cost of the country General travel expenses The following travel-related expenses are generally acceptable and University travellers will be reimbursed for these expenses: parking foreign currency charges visas tips although these should be kept to the minimum reasonable level (This does not apply if the tip has already been included in the bill). the hire/use of a GPS with hired cars for road travel in unfamiliar locations Vaccinations which carry a charge (receipt must be supplied) Page 13 of 35

14 If travelling to malarial areas, antimalarial treatments (including mosquito repellent and tablets) (receipt must be supplied) Anti-DVT flight socks (receipt must be supplied) if travelling long haul Frequent flyers may wish to maintain an emergency medical travel kit which should contain syringes, needles and an intravenous giving set and blood substitute solution. Travellers are advised to speak to their GP or local pharmacist on the options available. Travellers are responsible for maintaining the contents of this kit and ensuring that the contents are within the expiration period. This item can be claimed as an expense for business, upon proof of purchase. Regular travellers may also wish to pack some of the following items: o A few plasters o Analgesia eg Paracetamol or aspirin (which is effective for controlling any fever) and/or Ibuprofen (which also has anti-inflammatory properties) o Antihistamine cream / tablets o Oral rehydration salts o Anti-diarrhoeal treatments The following travel-related expenses are NOT acceptable. Do not put the following on an expenses claim: Laundry service/dry-cleaning (unless the business stay is longer than 7 nights) Mini-bar contents (except when arriving late at night and this is the only available option or if there are no local shops nearby, in which case, reasonable use should be exercised) Movies/videos Parking fines The loss/theft of goods Childcare Petcare Any personal elements of a business trip Personal car maintenance, or damage to personal vehicles while on business Spa treatments Health/fitness clubs (long term travellers may wish to use gym and a small charge would be acceptable in such instances) Toiletries Page 14 of 35

15 5.3. Staying with Friends Allowance Where a member of staff chooses not to stay in hotel accommodation and instead stays overnight with friends or relatives, an allowance of 25 per night may be claimed by way of a contribution towards the costs incurred by the host in providing board and lodging. This allowance is in lieu of the hotel costs which would normally be claimed. Where this allowance is claimed, the only other scale subsistence allowance for which the members of staff may claim, where appropriate, is the day subsistence (up to 5 hours) allowance (see section 4). This is allowable overseas. This is taxable and will be paid through the payroll University Accommodation There may be a requirement for certain members of University staff involved with particular projects to work late. If they choose to stay overnight on campus, accommodation costs will not be refunded. Travellers may choose to stay in University accommodation provided that they pay full rate charged by either Conference Aston or Residencies Work-Related Training Courses The University organises training courses in-house and the costs of these courses are borne by the University. Members of staff may, however, be required to attend training external training courses in order to perform their duties effectively. In order to claimed, it must be clear that any training for staff paid for by the University is required to support or develop the skills of an individual in undertaking their work for the University. Where it is necessary to travel in order to attend external courses, any travel and subsistence expenses incurred may be claimed as business expenses under the rules indicated in the Travel and Subsistence sections of this policy (see sections 2 and 4) Other training Where training is provided or paid for by the University that is not linked to the support or development of skills to do the job, there may be a tax issue so please check with the Payroll Manager. An exception to this is where the University pays for an individual who is about to leave, or who has already left, University employment where the course is intended to provide skills that might help the individual find further employment. Page 15 of 35

16 5.7. Conferences, lectures and seminars Individuals may need to attend conferences, lectures and seminars in the course of their work for the University. These may be one-off events, as opposed to continuous training courses. Nevertheless, the rules are exactly the same as those for staff training detailed in the sections above. Where it is necessary to pay a membership fee in order to attend a conference then if this is a one-off fee that applies only for the duration of the conference then the payment should be considered under the sections above as an associated conference cost; if, however, the fee relates to a continuing membership then it should be considered separately under the rules for subscriptions in section Advances for Travel Where a member of staff has not been issued with a University credit card, an advance against travel expenses may be claimed subject to the following conditions: Amounts advanced will be limited to the amount of anticipated cash expenses and must be authorised by the travel authoriser. An advance will be limited to a minimum of 100 and a maximum of 2,000 and must be cleared, by submission of expense claims substantiated with appropriate receipts, as soon as possible, and in any event not later than one month after the completion of the trip. Any unused balance of the advance must be repaid within one month of the completion date of the trip it was provided for. No further advances can be made while an advance is outstanding. The University reserves the right to recover any uncleared advances from any monies owed to the member of staff. Advances must be requested on the expense claim form and the word ADVANCE clearly indicated in the "details of travel" section. Unused balances refunded to the University should be shown as a credit and the Cashier s receipt attached as proof of refund. Advances in foreign currency and/or traveller s cheques will not be made by the University. Payment will be made in accordance with the paragraphs above, in sterling, and the responsibility for obtaining foreign currency and/or travellers cheques will rest with the member of staff. Page 16 of 35

17 7. Entertainment 7.1. Definition of entertaining Entertaining is defined as the provision of food, drink or other hospitality. Practically, this can include activities both on and off University premises and, under the general heading of hospitality, is not limited to meals. It does not include meals taken as part of business travel where the primary purpose of the travel is not the meal itself. In the first instance, all internal catering should be ordered through the Catering Department to ensure that where possible University monies are kept in house University policy University policy on entertainment is that expenses may only be made or reimbursed for entertainment incurred wholly, necessarily and exclusively in the furtherance of University business. The level of entertaining should be equivalent to the amount the employee would deem reasonable when paying themselves. The only exceptions to this are those events specifically defined in these rules. Business contacts do not include other members of staff. The ratio of visitors to staff is irrelevant. All staff in attendance should, however, be present in the necessary performance of their duties. All such expenses must be reasonable and appropriate to the situation and suitable to the people who are being entertained. A useful guide is that if you would not spend the equivalent money on a meal or alcohol yourself, then it is probably excessive in a University environment. Since the Bribery Act 2010 came into effect, hospitality that is overly "lavish" and not of "genuine mutual convenience", may risk being viewed as a bribe. Consideration should be given as to whether any business entertainment could be perceived as excessive. Partners of University representatives should not be present unless visitors partners are also being entertained and only then on an exceptional basis. The most senior member of staff at the event should pay the bill and claim on expenses Tax treatment of entertaining For tax purposes a distinction is made between business and non-business entertaining, ie hospitality provided as part of the furtherance of a business or mainly for social purposes. Page 17 of 35

18 Business entertaining is usually, although not always, tax allowable or exempt from tax; nonbusiness entertaining is usually subject to tax. The University has a number of agreements with HMRC that limit the tax effect of certain types of entertaining Specific procedures for entertaining expenses In addition to the general procedures on expenses and any additional conditions detailed in the following sections, all payments or reimbursements that include the cost of entertaining must provide the following details: Additional details for entertaining claims and payments: The names of all attendees, including University staff; and The organisation each attendee represents; and The purpose of the entertainment (for example, negotiation of contract, business acquisition, research project, student placements ) Provision of refreshments during a meeting In the first instance, all internal catering should be ordered through the Catering Department to ensure that where possible University monies are kept in house. Light refreshments (tea, coffee, biscuits, etc. but not sandwiches) provided by a department before, during or immediately after a business meeting will not be taxable as long as the meeting takes place on University premises. These costs should not be claimed through expenses but via normal purchasing arrangements Sandwiches and working meals on University premises Sandwiches, lunches or other types of working meal will be treated as allowable business expenses if the following conditions are met: Conditions for working meals on University premises: The meal takes place on University premises; and The meal is an integral part of the meeting; and Alcohol is not consumed; and A copy of any agenda, notes or action points is retained by the department and can be produced as proof of the business of the meeting if required. Page 18 of 35

19 Practically, the requirement that the meal is an integral part of the meeting means that the meeting takes place over a normal meal time and that the business of the meeting continues either whilst the food is consumed or immediately afterwards. Where the meeting has in fact concluded and the food is consumed immediately afterwards this is not an allowable business meal and would need to be treated as taxable entertaining. These costs should not be claimed through expenses but via normal purchasing arrangements Business lunches and working meals elsewhere Where working meals are taken elsewhere other than on University premises, they will be treated as allowable business expenses if the following conditions are met: Conditions for working meals other than on University premises: Third party speakers, lecturers, business associates, clients or potential funders are present; and The meal is an integral part of the meeting; and A copy of any agenda, notes or action points is retained by the department and can be produced as proof of the business of the meeting if required. The requirement that the meal is an integral part of the meeting means that the meeting takes place over or close to a normal meal time and that there is a genuine need to host the meeting off-site. This could include the time of day if outside normal working hours or the need to use facilities not available on University premises. The department authoriser may allow an expenses claim for these costs. Meals that take place off-site and only include University staff do not satisfy the requirements for allowable business entertaining. Expenses cannot be claimed for these costs. For clarity, the following examples are accepted as allowable business entertaining where all of the above conditions are met: Examples of allowable working meals both on and off University premises: Examiners lunches or meals; Meals for visiting speakers or lecturers provided immediately before or after the event at which they are speaking; Meals involving external collaborators on research or business projects; Meals involving potential or actual sponsors or donors; Page 19 of 35

20 Meals involving officials of government or other publicly-funded organisations Tips Service charges or tips will only be paid for or reimbursed where they relate to an allowable business meal and are at a reasonable level. Tips should be kept to a minimum University-specific events The following University-specific events are claimable when taking place either on University premises or elsewhere: Examples of University specific events: New student dinners or welcoming parties; Drinks or light refreshments provided at the start of a new course or in association with lectures or seminars; Post-graduate entertaining. In all of the above cases the majority of attendees must not be University staff. The department authoriser may allow an expenses claim for these costs. 8. Other Expenses 8.1. Home/Personal Mobile Telephone Costs Aston University may provide mobile devices (indicative list includes: mobile phones, smartphones, tablets, laptops, dongles, etc) either to individual members of staff or to Schools/Departments/Teams where there is a clear legitimate business need. Further details of what can be claimed are detailed in the mobile technology policy Working from home The University does not provide any additional financial support for staff who may work from home, apart from that detailed in this and the mobile technology policy. Contributions to heating, electricity or other domestic costs are generally considered by HMRC to be taxable and will not be paid. Page 20 of 35

21 8.2. Professional Subscriptions Subscriptions to professional bodies The University has a dispensation from HMRC to allow payment for individual membership fees or annual subscriptions to qualifying professional bodies. This means that there is no reportable tax charge where the University makes such payments. Payments for individual membership fees to non-qualifying bodies are not covered by this dispensation and are treated as taxable benefits if paid for or reimbursed by the University. See section following. Departments are free to subscribe to professional bodies or similar organisations on a corporate or departmental basis where the reason for the subscription is to obtain access to professional literature, journals, advice, etc. in support of the work of the department. Corporate membership must be in the name of the University, department or a post (eg The Administrator ), paid for directly by the University, and the membership address must be University premises Qualifying professional bodies A qualifying professional body is one that appears on HMRC s approved list. Where individual membership fees or subscriptions to qualifying professional bodies are paid or reimbursed by the University the following applies: Conditions for payment of qualifying subscriptions: Membership is necessary in order to fulfil the duties of the role, or is required by contract of employment; and The body appears on HMRC s approved list; and The department or research funding concerned permits such payments to be made. Payments that satisfy all of these conditions will be exempt from any tax liability. If a department or research funder is unwilling to pay for a subscription that otherwise meets the criteria for acceptance then the individual may be able to obtain tax relief on the subscription paid in each year by applying directly to HMRC. Claims by individuals for reimbursement of permitted professional subscriptions should be made via the expenses process. Direct payments to professional bodies by departments should be made via the normal purchase order procedure. In both cases evidence of the fee Page 21 of 35

22 must be provided, together with a copy of the relevant part of HMRC s approved list showing the name of the qualifying professional body. Note: The University is unable to request additions to HMRC s list. Individuals should write to the body in question and urge them to apply for inclusion directly with HMRC Non-qualifying bodies A non-qualifying body is one that does not appear on HMRC s approved list. The University does not normally pay for individual membership of non-qualifying bodies as there is a tax liability. If it is considered essential for operational reasons, then a department may elect to pay for individual membership to such bodies, but only on the following basis: Conditions for payment of non-qualifying subscriptions: The department must approve the payment in principle for operational purposes; and The individual must pay the subscription fee themselves then claim reimbursement on an expenses claim form, supported by a valid receipt; and The reimbursement will be made as a payroll payment, not as an expenses payment, with associated tax and National Insurance deducted from the payment made Club membership Subscriptions to clubs are generally regarded as taxable benefits by HMRC if the cost is borne by the employer. The University, therefore, does not usually pay for such memberships. Where there is an overarching operational need for club membership, however, the rules for payments to non-qualifying bodies in section above will apply Professional body attendance Members of staff who are members of professional bodies may from time to time attend meetings of those bodies as representatives of the University. Where they do so and where authorised in advance, any travel costs or charges for entry to the meetings may be claimed as business expenses if substantiated with appropriate receipts. Where the member of staff holds office in the body, any costs incurred in the capacity of office holder which are additional to costs which the member of staff would have incurred in any event as a representative of the University may not be claimed from the University. Page 22 of 35

23 8.3. Books and Publications Departments may subscribe to those publications that, in the view of the Executive Dean or Head of Department (or nominated deputies), are necessary. Subscriptions should be in the name of the University, department or a post, eg the Administrator, paid for directly by the University, and delivered to a University address. Where it is necessary to provide a named individual then this is acceptable as long as the other conditions are met. Note: Subscriptions for publications paid for directly by an individual or delivered to a private address will not be paid for or reimbursed by the University Medical Examinations Where the University requires members of staff to undergo routine medical health checks or medical screening, the University may make the necessary arrangements with the medical practitioner and may pay the costs incurred directly. Members of staff must not pay the practitioner and reclaim the costs via the expense claim system. All medical reports may be supplied direct to the University but copies may be made available to the member of staff on request. Medicals may be required as follows: pre-employment medicals; annual medical screening for certain senior staff selected by the University or those members of staff whose job requires a regular medical to conform with Health & Safety Regulations; and occasional special needs cases where the University requires a report on the member of staff s fitness. The University will not pay for medical treatment which may arise from the examination Relocation Expenses Please see the HR guidance Eye Tests for Display Screen Users Please see the Health and Safety guidance Uniforms The University may provide uniforms for staff as determined by operational needs. The provision of clothing will be arranged by the University. Apart from the exceptions detailed below, costs may not be claimed through expenses. Page 23 of 35

24 The University s logo must be imprinted/stitched into or otherwise permanently attached to all clothing provided, other than safety helmets, in order to prevent private use which may be taxable. Exceptions Suits for Porters: used for graduation and VIP events. Suits may be bought and cleaned at the University expense. Both purchase and cleaning are claimed on expenses. Toe protector boots are supplied by the University but if they are uncomfortable then replacements may be bought and again claimed on expenses Gifts Gifts to staff Gifts to staff for reasons such as a thank you, illness, a birth or marriage, success in exams or leaving and retirement should be funded by staff collections and not by the University. Such gifts are considered to be personal contributions from colleagues and as such cannot be reimbursed Gifts to individuals who are not employees - UK In general gifts should not be given to non-staff members, however, Aston-badged gifts up to a value of 50 may be given if necessary. Where these gifts are not to student or Education related recipients, for tax reasons, they must not be food, alcoholic drink or tobacco or vouchers which are exchangeable for food, drink or tobacco. If the total amount of gifts given to an individual exceeds 50 for any one item or across the tax year as a whole, the gifts are taxable and must be agreed with a member of Executive and notified to the Payroll team who will keep a record for tax purposes Gifts to individuals who are not employees - Overseas Small token gifts up to the value of 50 given to third parties overseas may be purchased and, where paid for by the member of staff, reclaimed through the expenses system. Where these gifts are not to student or Education related recipients, for tax reasons, they must not be food, alcoholic drink or tobacco or vouchers which are exchangeable for food, drink or tobacco. Further details can be found in the Bribery, Gifts and Hospitality Policy. Page 24 of 35

25 9. Non-employee expenses and payments All the preceding guidance applies to non-employees but there are some specific payments to non-employees with additional guidance: 9.1. Students Payments to students for work should be treated in exactly the same way for tax and National Insurance purposes as they are for any other employee Foreign students The guidance in this section applies equally to both UK and foreign students Academic visitors Academic visitors can be paid expenses as per this policy however their contracts are hard to separate from employment contracts and payment of some costs could trigger employment status. If in doubt, contact HR to assess their status Payments to external examiners External examiners are now considered workers by HMRC and will be paid in line with other employees Volunteers and subject payments General rules for volunteers Income tax is only chargeable on an individual providing services where that individual: holds an office or an employment; and receives earnings from that office or employment. Earnings can mean payment in kind or cash. Where office holders or volunteers who do not hold any post, office or employment with the University, receive only reimbursement of expenses incurred (eg for travel that can include travel between home and the place where the activities of the office take place) such payments are not treated as earnings and, thereby, fall outside of any deductions for tax or National Insurance. Such expenses should be claimed in line with this policy. Page 25 of 35

26 Where office holders receive payment in return for holding that office, including round-sum payments to cover time spent, then this is usually a taxable arrangement and should be paid via Payroll. Special considerations exist for payments to volunteers in clinical trials or research studies Payments to volunteers in clinical trials and research studies In 2004 the former Inland Revenue agreed the following principles with the British Universities Finance Directors Group. In the course of undertaking research, particularly in the areas of social science or medicine, volunteers are often required to participate in tests, trials, consultations or interviews. Participants may be members of the general public or specific groups, the members of which meet criteria that fall within the area of study. Where participants are also members of staff of the University then HMRC regard their participation as distinct from their normal duties of employment and, thereby, not treated as employment, as long as it occurs within their own time and they are under no obligation to take part. In all instances, as long as any payment made to volunteers is small, to cover out of pocket expenses and reasonable compensation for time spent, then it may be made without deduction of tax or National Insurance. It is the responsibility of the recipient to declare this income to HMRC. Payments to volunteers Payments should be made through vouchers or web payments. For further information on how to pay volunteers, please speak to the cash management team. 10. Items not covered elsewhere In the event that an expense is incurred which is not included in this policy, the matter must be referred in the first instance to the Departmental Administrator who should refer to the Payroll Manager, unless previous guidance has been issued to cover this circumstance. 11. Tax These policies have been prepared in the light of the income tax regulations, including the maximum rates of travel and subsistence which can be paid free from tax liability and which have been agreed by the HMRC. As a result, staff do not need to report expenses and/or Page 26 of 35

27 benefits received in the course of their duties to HMRC at the end of each tax year. All contact with the HMRC will be conducted by the HR payroll department. It is essential, however, that to maintain this agreement with HMRC, staff must comply strictly with the requirements of this policy and follow the procedures laid down. HMRC auditors can visit the University at any time and any breaches detected could result in the dispensation being withdrawn and large penalties being imposed. It is therefore in all our interests to follow these guidelines. Departments should note that where any tax and/or penalties are imposed resulting from breaches of these guidelines, these will be charged to the relevant budgets. Any expenses that are deemed to be taxable will be paid through the payroll with tax deducted as required. 12. Questions In the event that an expense claim or benefit is considered for any items not included in this manual, or any member of staff has a query relating to the payment of expenses under this policy, the matter must be referred in the first instance to his or her manager who may thereafter need to refer to the HR Payroll Manager for guidance. 13. Contacts Contact Name Telephone Insurance Officer Alan Hawkesworth a.p.hawkesworth@aston.ac.uk Payroll Manager Denise Aldred d.m.aldred@aston.ac.uk Purchase Ledger purchaseledger@aston.ac.uk Page 27 of 35